Marketing takes time. Everything from researching, planning, and executing a campaign can take months or longer.
Some things succeed. Some things don’t work.
Wouldn’t it be a lifesaver if you knew what strategies, channels, and customer profiles work (or don’t) ahead of time?
It’s possible thanks to an AI-driven technology called predictive marketing software.
Additionally, 79% of executives agree that artificial intelligence makes their role easier and more efficient.
Don’t get left behind and start using predictive marketing today. Here’s what you need to know:
What is predictive marketing software?
Firstly, let’s get back to the basics.
Predictive marketing software is powered by a form of artificial intelligence known as predictive analytics. This uses machine learning, data mining, algorithms, and other processes to predict future outcomes. (More on exactly what later.)
The software uses historical data combined with current insights to generate accurate forecasts. It’s used to determine if marketing strategies, channels, and other assets will perform as intended or miss the mark. Ultimately, this saves marketers from investing in campaigns that don’t move the needle and drain the budget.
Think of the process like this:
But, I know what you’re thinking: AI is complex, right? Sure, the underlying technology is. But it’s easier to adopt, use, and benefit from than ever before. It’s no longer a secret tool used by Fortune companies. It’s open to everyone.
What can predictive marketing software do?
Now for the fun stuff. Let me explain some of the predictive marketing software’s main uses and benefits.
1. Predictive revenue
MRR, ARR, and similar measurements of revenue are important for every business. It’s one of the staple ways to measure overall growth and longevity.
Predictive marketing software is capable of forecasting revenue at the company and campaign level. The total number of revenue a business generates is directly correlated to its survival.
Joshua Kennon, author and managing director, commented on this saying “The total revenue figure is important because a business must bring in money to turn a profit … For start-up companies that have yet to turn a profit, revenue can sometimes serve as a gauge of potential profitability in the future.”
Similarly, the revenue generated from individual efforts like particular campaigns, channels, and buyer personas is equally important. Projections for each of these helps companies to reallocate resources to what’s driving sales.
2. Predictive customer behaviour
Customers are fickle, aren’t they? It’s difficult to determine how they will behave or what they’ll do at any given time. We can get pretty close, but humans aren’t robots. Consider the average marketing funnel for example.
Complex, right? That’s why predictive marketing software is capable of predicting how they will behave ahead of time.
Marketers can take advantage of this by refining components of their funnel, web pages, and products to maximize conversions and user experience.
Let me give you an example.
Predictive marketing can find all of the holes in a funnel where users are dropping off and churning. You could then address all of these places and have more customers convert as a result.
3. Predictive KPIs
While revenue, retention, and churn are important, there are hundreds of other KPIs your business might measure. These include click-through rate, impressions, cost per acquisition; you get my point.
That’s also where predictive marketing strives. It takes historical data you have about any asset or channel and forecasts it. This means you are able to effectively predict the performance of every and any part of your company.
Take Morphio’s financial anomaly feature as an illustration:
Our marketing security software displays an expected ad spend based on the historical media budget.
That brings me to my next point.
4. Predictive finances
Financials aren’t everyone’s strong point. Nonetheless, they’re very key to running a successful company. If you know your numbers, you know your business.
Doing so means you can make optimizations, adjustments, and discover chinks in your armour that you wouldn’t otherwise. Luckily, predictive marketing can handle that, too.
Let’s begin with expenses. Contractors, tools, equipment, and other items really add up. Are they generating a return? Are they worth the spend? Predictive software will forecast how much these will cost you, if they change seasonally, and overall if they’re worth their weight.
Additionally, predictive marketing software will predict the cost of individual campaigns like PPC, content marketing, email, etc. Use the trends and patterns to determine what components of your marketing mix satisfy budget requirements.
Wrapping up predictive marketing software
Moving into 2020, marketers need to work smarter, not harder. You don’t have to brute force every project, client, and task. Tools are here to automate and save us precious time and mental energy.
Predictive marketing is one of the greatest in particular. This is software powered by predictive analytics, data mining, big data, machine learning, and other forms of artificial intelligence. It’s also simpler to use and adopt than ever.
Predictive marketing software is firstly capable of forecasting high-level revenue numbers or drilling down into individual campaigns. Similarly, marketers can use it to forecast any KPI including conversion rate, cost per acquisition, and lifetime value for example.
Understanding how customers may behave in the future is extremely crucial for successful marketing, as well. You will be able to predict how customers will interact with web pages, where they churn and adjust accordingly to maximize performance.
And, lastly, marketers can forecast various financial instruments like expenses, liabilities, budget, and costs to determine how it will trend in the future to make smarter decisions now.
Try Morphio today for free. We’ve developed the world’s first marketing security software that’s built on predictive analytics. It forecasts how your campaigns are performing with real-time alerts of profitable opportunities, risks, or failures.